After the recent launch of Microsoft Surface tablet, Google will be reportedly announcing a 7-inch Android Nexus tablet, one from the Nexus family at its developer conference later this week. The tablet, which is rumored Nexus 7, is expected to be the first ever device to run on Google’s next Android OS, Jelly Bean. According to the leak, it’s built by Asus, with a 1.3Ghz quad-core Tegra 3 processor, GeForce 12-core GPU and 1GB of RAM with two different storage variants: 8GB and 16GB. And the most amazing news being, this tablet will be available for $199 for 8 GB model and $249 for 16 GB. The tablet will also run for nine hours on a single battery charge and will support Google Wallet, and NFC. UPDATE! Google has Launched Nexus 7 — Read here about Specs, Features and why it can be a Kindle Fire Killer!

The sources also says the tablet will have a battery that lasts nine hours, an ISP display with a 178-degree viewing angle and a screen resolution of 1,280 by 800 pixels. It is expected to have a 1.2 megapixel front-facing camera and a 10-point touch capability. There are no back cameras which may be due to the cost cutting factor. Wi-Fi connectivity will come as standard, as will NFC capabilities, and the device detailed in the document has a 1.2MP front-facing camera (nothing on the front) and a battery life that can last up to nine hours.

The announcement of the tablet is expected to come during Google conference that is being held in San Francisco which begins Wednesday. The Nexus 7 is being reported by Gizmodo Australia, which claims to have gotten its details from a training document that says the device could arrive as early as next month. As per the leaked document Nexus 7 will be the first to run Jelly Bean, the new version of Android. Details are still blurry on Jelly Bean, but the slides tell us that Google will handle operating system updates from now on.

The lower price will help Google compete with Amazon’s Kindle Fire — which is now leading the 7-inch tablet market with its $199 model. It sold over five million units last quarter. The Barnes & Noble Nook Color Tablet — also running the Android operating system — is priced at $169 for the 7-inch touchscreen version.

Google is under pressure to unify Android operating software for smartphones and tablets that has suffered from “fragmentation” as competing gadget makers put individual spins on the free software.

Just like with Apple trying to convince developers that it has a larger environment and audience on its platform, Google is doing the same thing with Android, Chrome, Chrome OS and Google TV.

The first clue was when Asus demonstrated the awesome cheap and wonderfully cheerful Eee Pad MeMO 370T at this year’s Consumer Electronics Show in Las Vegas, before delaying the unit indefinitely.

This price point will put the Nexus 7 in line with Amazon’s Kindle Fire, which is what some are seeing as the main competitor for this device, not the iPad.

Asus is listed as the device’s manufacturer and it is rumored to be released in Australia in July. We’ll know soon enough whether or not it’s real or just a fantasy — if the tip (and others we’ve been hearing) is right, Nexus tablets (eBook readers) will spread ’round the world come July.